North Carolina Down Payment Support Systems
Online Merchant account - These systems would be the Mortgage Credit Certificate and also the deposit Assistance System.
Should you qualify for one of those programs and you buy a house between December 1, 2009 and January 1, 2009, you might also be eligible for the $8,000 tax credit merely enacted into law.
First, who's a first-time Home Buyer? A first-time Home Buyer is someone who has not owned a house in the previous three years. That is precisely the same qualifying definition.
A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther.
You'll be able to claim 20% of the interest you pay on your own mortgage as a credit in your federal income taxes, if you qualify for the MCC. You can save as much as .
If you do qualify for the MCC you may be able to unite this with the $8,000 tax credit. This might reduce the tax liability of a buyer's .
Who Qualifies for an MCC?
Who qualifies for an MCC is based on your income and the price of the property you are purchasing. Household income is defined as the “gross income of the mortgagor and any person anticipated to live in the dwelling who is 18 years old or older.”
House price limitations that apply in Durham Orange and Chatham Counties and the income are listed below.
MCC Income Limitations 1 Individual $61,500 2 Persons $61,500 3 Persons $70,500 4 Individuals $70,500
MCC Sales Price Limitations New Home $220,000 Existing House $210,000
Who Qualifies for Down Payment Help?
Home buyers that want help with their down payment and closing costs may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The customer just has to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.
This plan has stricter income limitations than the MCC plan outlined above. Like the MCC application, it can be utilized along with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, however, can not be employed in conjunction with the MCC. This really is an either or scenario.
House price limits that apply in Durham Orange and Chatham Counties and the income are given below.
Down Payment Assistance Income Limits
1 Man $39,950 2 Men $45,650 3 Individuals $51,350 4 Individuals $57,050
Down Payment Assistance Sales Price Limits New House $210,000 Existing Residence $210,000